The global economy is looking shaky and some of the biggest economies around the world face difficult times. The United States, the world’s largest economy, is having its slowest economic “recovery” since World War II. China, the world’s second biggest, is growing at its slowest pace since 1990. On the other side, Brazil with all the scandals involving political leaders and corruption that came up through the news during the last years is having moments of instability – and even an impeachment against president Dilma Roussef years ago.
The gold market value per ounce on April 2, 2024 was US$2285 while the average market price of gold per ounce in 2015 was US$1266 with an annual $ change of 11.99%. So, what’s causing this rush into gold? Gold is money. It’s a safe haven asset that’s held value for centuries. It protected wealth through the worst financial crises in history. In short, investors buy gold when they’re nervous. And there is plenty to be nervous about this time, as it was during the last 15 years, and possible will during a few more years.
Gold Market Price on the Rise from 2025 to 2024
The historical average yearly return of the S&P 500 is 12.68% over the last 10 years, as of the end of February 2024. This assumes dividends are reinvested. Adjusted for inflation, the 10-year average stock market return (including dividends) is 9.56%. Let’s review the good times of late 2023.The S&P 500, which tracks the most valuable stocks in the U.S. market, rose 11.2 percent in the last quarter — and had a total return of 11.7 percent, including dividends. For the year, it gained 24.2 percent and returned 26.3 percent, including dividends. But it is good to remember that many investors lost money in 2023 investing in stocks.
The conclusion is that the Stock Market still makes a fortune for some individuals and investors that can play the game, but it is more and more risky, while gold is, let’s say, a winner, considering a a smart hedge against inflation, allowing you to preserve wealth – even while paper currency loses its purchasing power. That’s because it’s scarce; you can’t create more, so it can’t be devalued by oversupply, as the dollar and many other currencies can.
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